Banks and credit unions appear to be more anxious about their ability to manage risk in 2018, according to a survey of 608 financial institutions. The survey by information-services firm Wolters Kluwer found the overall risk level of its annual Regulatory and Risk Indicator had a score of 103, up from 100 in 2016. The banks were asked to name their top risk priorities for 2018: 83% said cybersecurity and data security, 54% said IT risk and 50% said regulatory risk.

Sixty-seven percent said their top compliance concern was their ability to keep up with what they call an environment of increased oversight, up from 66% last year. Asked if their regulatory burden will get reduced in the next few years, 69% said “not likely.” Asked what challenges they face in managing an effective compliance program, 46% said not having enough people, 39% said having to rely on manual processes rather than automated systems to get work done, while 34% cited too many competing priorities.

Sixty-five percent said they were concerned about their banks’ ability to manage risk across all lines of the business, up 13 percentage points from 52% in 2016. Asked what they saw as their top regulatory or risk management challenges in 2018, 30% said meeting the new Home Mortgage Disclosure Act rules that take effect on Jan. 1, 2018. The responses reinforce “the strategic imperative of having a proactive, well-staffed and supported corporate compliance program that operates across the three lines of defense...in tandem with an overarching risk management framework integrated with all lines of business,” said Timothy R. Burniston, senior advisor and principal regulatory strategist at Wolters Kluwer, in a statement.